tag:blogger.com,1999:blog-1752771132348583018.post7849465678618267660..comments2024-03-29T00:50:36.331-05:00Comments on Managerial Econ: Apple starts making its own chipsLuke Froebhttp://www.blogger.com/profile/06832270922187297624noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1752771132348583018.post-79839385303999294822016-02-21T20:17:57.893-06:002016-02-21T20:17:57.893-06:00 Apple’s incredible success can be greatly attrib... Apple’s incredible success can be greatly attributed to its economies of scale. As stated by Lloyd (2013), it’s not for one to say that Samsung and Microsoft don’t have economies of scale, it’s just that Apple’s is substantially superior. Apple also greatly benefits from its learning curve. By being a first-mover, Apple takes full advantage of technology by both appealing to users and producing products in a way that lowers long-run average costs. Innovation is at the heart of Apple’s values and this has been imperative for their success as far as cost and profit goes. <br /><br /> In the specific case mentioned here, Apple’s decision to make its own chip for the iPad may not only contribute to economies of scope, but would also offer consumers a more intuitive device. Furthermore, the mention here of the company creating their own chip for the Mac is exactly what the company is currently working towards (http://9to5mac.com/2015/01/14/apple-a-series-chips-mac/). As the company continues to grow and evolve towards new products, the law of diminishing marginal returns will continue to bear true as they have discovered how to reduce output associated with extra input. When we talk about economies of scale, economies of scope and learning curves, Apple is an excellent example of all of these, driven by their first-mover, innovative nature. <br /><br />Lloyd, Alex. (2013 February 24). Apple’s Cost Advantage: Learning Curves and Economies of Scale. Retrieved from http://lloyd7160.blogspot.com/2013/02/apples-cost-advantage-learning-curves.html <br />Anonymoushttps://www.blogger.com/profile/11643918883187263081noreply@blogger.comtag:blogger.com,1999:blog-1752771132348583018.post-37356871791898934282012-12-12T01:54:38.516-06:002012-12-12T01:54:38.516-06:00Semiconductor industry has huge amount of initial ...Semiconductor industry has huge amount of initial investement such as entrance barrier. It is impossible that Apple start to produce chips for iPad within couple years. Although there would be economic of scale after investing for chips, fixed cost will be much higher than economic of scale.Sangwon Leenoreply@blogger.comtag:blogger.com,1999:blog-1752771132348583018.post-25429647499476683642012-12-08T23:49:59.589-06:002012-12-08T23:49:59.589-06:00Seems scary for Intel.Seems scary for Intel.Anshulhttps://www.blogger.com/profile/08058473956843617814noreply@blogger.com